Switzerland's renowned political neutrality has evolved into a lucrative asset, enabling the Swiss elite to carve out a haven for capital and capitalists alike. This reputation as a safe space is underpinned by the country's bank secrecy legislation, adopted in 1934, which has transformed Switzerland into a refuge for offshore fortunes. Astonishingly, 27% of the world's offshore wealth is managed in or from Switzerland. This financial secrecy is so integral to the Swiss banking system that disclosing the owner of a numbered account was made a federal crime in 1934, further veiling the burgeoning banking industry from public scrutiny.
The Swiss banking system is a formidable force in global capitalism, operating discreetly to facilitate financial transactions. With undeclared wealth amounting to no less than one-fifth of Switzerland's GDP, the country's financial institutions play a pivotal role in the international finance landscape. The publication of Ziegler's book, "Switzerland: The Awful Truth," in 1976, shed light on the nation's complicity in fostering capitalism on a global scale. Ziegler, a long-serving member of the Swiss parliament and prolific author, has consistently criticized Switzerland's influence and its banking practices.
Ziegler's experiences in the Democratic Republic of the Congo in 1961 were transformative, radicalizing him against capitalism and imperialism. His criticisms extend to the Swiss banking system's involvement in dubious dealings, such as accepting cash from dictatorships and aiding Gulf sheikhs and Guatemalan colonels in concealing their wealth. The country offers special concessions to affluent individuals and corporations, including tax deductions and lenient regulations on pollution and labor abuses. Ziegler argues that these practices contribute significantly to global inequality, with Swiss prosperity built on the exploitation of others.
“The ordinary Swiss people were deeply hostile to the mass murderers in Berlin. They hated Adolf Hitler and refused any dealings whatsoever with him and his cronies,” – Daniel Ziegler
Despite public sentiment, certain members of the Swiss ruling class, including directors of the Swiss National Bank and board members of commercial banks, maintained connections with Nazi Germany during World War II. Ziegler has testified before the US Congress on the role of Swiss banks during this period, highlighting the moral dichotomy within Switzerland.
“In Switzerland, the handling of money has a quasi-sacramental character,” – Daniel Ziegler
This reverence for financial transactions has solidified Switzerland's status as a major hub for international finance. Cities like Geneva, Zurich, Basel, and Lugano host numerous financial institutions that underpin various global activities.
“It is hard to imagine a human activity that is not financed by a [financial institution] in Geneva, Zurich, Basel or Lugano,” – Daniel Ziegler
Ziegler's critique extends to the psychological impact of Switzerland's financial maneuvers, describing them as destabilizing.
“They always say something like, ‘Yesterday your son was here, you were there.’ It’s a kind of psychological destabilisation.” – Daniel Ziegler
He further illustrates the ethical implications of Switzerland's banking practices.
“Blood may not run down the walls of the UBS headquarters,” – Daniel Ziegler
“But it’s as if it did: the relative wellbeing of Swiss people is financed by death, fear and famine. This is Ali Baba’s cave: the world’s haven. That’s unique to Switzerland.” – Daniel Ziegler
The immense influence wielded by this small nation is encapsulated by its capacity to manage such a significant portion of global offshore wealth.
“The fact that this tiny country of only 42,000 sq km, of which only 60% is habitable, with a population of fewer than 10 million, is such a powerful offshore centre – that 27% of the world’s offshore fortunes are managed in or from Switzerland – it’s just astonishing,” – Daniel Ziegler